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What Is the Role of an Oracle in the Execution and Settlement of a Tokenized Options Contract?

Oracles feed off-chain price data to the contract, triggering automated settlement and validating option status (ITM/OTM).
Greeks.Live16.11.25

What Is the Role of an Oracle in the Execution and Settlement of a Tokenized Options Contract?

Oracles provide the off-chain market price data for the underlying asset to the on-chain smart contract. This data is critical for determining when an option is in-the-money (ITM) or out-of-the-money (OTM) and for triggering automated settlement upon expiration.

A reliable, decentralized oracle is essential to prevent manipulation and ensure the integrity of the contract execution.

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